Accounting – Role Of An Accountant In A Democratized Nigeria

Accounting – Role Of An Accountant In A Democratized Nigeria

Accounting – Role Of An Accountant In A Democratized Nigeria

It is often said that an organization without an accountant is not a serious organization as it has no credibility. This is because the accountant is seen as the financial “gatekeeper” whose presence within an establishment underlines a commitment to sound financial principles and good business values.

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The society therefore expects the professional accountant to be able to give a good accountant of himself by exhibiting a high degree of professional competence and unshakeable integrity in the discharge of this duties. The economy of Nigeria and indeed the economic health of the world are threatened if there is no sincerity of purpose in performance of the duties of the accountant, it must therefore be seen to be manifestly so.

As a professional accountants play roles in decision-making. The operate in the world of change in organizational collapse, business impropriety and regulatory failures are on the increase in such an environment, a clear understanding of and unalloyed commitment to ethical standard become imperative to guarantee effectives

Admittedly, there are bad eggs in every organization and profession and as such, the accounting profession cannot claim exception. The challenge before an accountant is to ensure that such element are not allowed to threaten the future of the profession; hence the need for all members to uphold the ethics of the profession through acceptance and strict observation of common rules of behaviour that regulate their conduct and relationship with individuals, cooperate bodies and the large society.

As well known, almost all aspect of human activities have undergone changes globally, in view of hi-tech information and communication technology. There is therefore the need for accountants to take a critical look into the present practice of the accountant profession with a view to fastening out appropriate strategies for meeting up with future challenges. In furtherance of your association’s resolve to enhance the skills of its members and keep them. updated, it is strongly suggested that the association should as a matter of urgency, initiate a foundation for research in the study and practice of an accountancy and endow professional chairs in this regard in our tertiary institutions.

I am fully conscious of the fact that accounting ethics are quite central the success of our bold initiates in the act of governance designed to take the state to greater height.


This study is fundamentally taken to evaluate and bring home the role of an accountant plays in a democratized Nigeria. The aim is to find out some of the roles of an accountant in a democratized society like ours.


The study is aim at improving the awareness of the roles of accountant in a democratized society like that of Nigeria.

It will also help as a reference source to its users in this area of study.


In carrying out this work, the student encountered some problems which are listed below.

2 TIME CONSTRAINTS: There was no sufficient time for the student to carryout a comprehensive research as she has to attend to lectures, solving of assignment and other things.

3 FINANCIAL CONSTRAINTS: The student was face with financial handicap in the course of research work.


I ACCOUNTANT: An accountant is a professional person that coordinates the functions of financial accountant, management accounting cost accounting auditing and investigation and financial management including taxation e.t.c.

II ACCOUNTING: it is the process of recording, sorting and summarizing data related to business transactions and events. It is also concerned with reporting and interpreting the data of the society.

III ROLE: This is the function or position that an accountant has or is expected to have in the society.

IV DEMOCRATIZED: To make a country more democratic.



There is a nexus between the accountant and economic well being ordinary, which no macro level should certainly translate to the promotion and advertisement of economic development. The nexus flow simply the role which accounting information traditionally plays, on the one hand in securing accountability and on the other in improving and facilitating optional decision-making in every situation were choice amongst alternatives is involved. The accountability function of accounting which was almost exclusively stressed in the nascent stages of the development of the discipline continues to be relevant and important, especially in current times when the complexity of the business and its organizational form and the separation between the ownership class and professional management have never been greater important as this role of accounting is, which is principally met by the audit certification process it has since about the middle of the present century. Yielded it dominant place to the role which now requires accounting to provide a whole gamut of information[consisting of economic or financial facts and figures] for clarifying decision options in the first place, and then for monitoring the ensuring activities and operations afterward, with the aim to enhance efficiency and performance and thus promote well being. This inter day role of accounting has brought, it even closer to the needs of economic development, for it, at once expand the horizon of its application beyond the erst while narrow confines of business and other micro socio-economically relevant domains of government [for performance fiscal and development] and macro[for economical and social policy action and evaluation].

The connection between accounting and economic development seem, fairly, implicit from the nature of the letter. A fairly difficult concept to define “national economic development” may be said to comprise the general level of efficiency attain in a nations production process as it affect output, real income and standard of living. Production here meaning all activities undertaking [in a country]. Whether they relate to agriculture, conversion and manufacture or distribution, service or government.

The relevance of accountancy to economic development should be seen in terms of the use to which accounting concepts perceptions and measurement processes and techniques lend themselves, in a nation’s continuous endeavour to improve its productive efficiency. The utilitarian and adaptive nature of accounting, particularly, lends to such application in generating but micro and macro level, relevant information on which vital and rational choices can be exercised: on which short, medium and long term plans can be drawn up and also for all the important post implementation evaluations which help implementation evaluations which help immensely to align outcomes to plan. The immense growth experienced by the accounting discipline particularly during the last decades has indeed brought it much closer to the requirement of national economic development.

One thing which must surely strike the student of the history of accounting in modern time is the steady more noticeable since of the past thirty years. Or so by accounting theories to expand the scope and methods of the discipline. Things seem already so distant from the period when Johann Wolfgang von Goethe (1749-1882) described book-keeping as “one of the described inventions of the human mind” and Anhur cayley (1907) in turn called it “one of the two perfect science”, it seems that at that time the endeavors of “book-keeping” and “accounting” were conceptually close enough to be generally regarded as synonymous, and the two authors were clearly impressed with what seemed a perfect order in the law of the double entry which underline all book keeping operation and supposedly all accounting measurement. Accounting and book keeping then merely served to provide information which investors and lender needed for their respective evaluations which were not far from ascertaining accountability of some sort. A letter extension of the role of accounting expanded it relevant to government taxation and revenue generation function.

Finally, the issue of the role of accounting in national and economic development can really not be contended. It is an issue which has always been regarded as implicit . The important roles played by the accountant in a general schemed of things, in business firm actively involved in wealth creation process in government and other national institution which provide the needed basic infrastructure and macro socio- economic environment and in every form of activity of benefit to society is the best evidence of such relevance. The predominant issue today is really not whether the accountancy profession is relevant to national development aspirations but how, best to maximize the value to society of the unique blend of knowledge of the unique blend of knowledge and skills of which the professional accountant is a repository.


If transparent economic relationship are to exist. The accountant must provide the necessary check and balances. Thus, in addition to the provision of information needed for economic decision making, accounts have been developing internal control measures designed to prevent misappropriation thereby safe guarding individuals and cooperate funds. These measures have aided the security and maximization of the value of investments over time. This watch dog first attained global significance during the English industrial revolution when specialists were hired to manage production activities which shifted from family homes to factory setting such specialist, often described as directors inevitably needed to ensure the safety of assets in their custody.

In order to reinforce of these directors therefore, there is need to hire more professional accountants (designated as internal auditors) who will comprehensively revisit the internal control mechanisms of government ministries and department. The function of internal auditor includes the designing [in association with external auditor of lickeage-free commercial transactions processes such that the assets of the organization are not only secure but also that optimum benefits are realized from the need to evolve suitable and adequate internal control system in the public sector assets have life spanned of more than one year which typically covered by the budget. Thus, expect appropriate accounting records [example well labeled assets registers] are kept and constantly monitored reliable information about such assets and public governance will not be available.


The contribution which accounting can make toward economic development as expended in the fore going remains primary valid at least at the conceptual or the theoretical level whether this actually holds goods in practice and the extent to which it does so in any specific situation depends on a number of factors among which are, the status of the accounting profession the particular country, the number and the sectorial distribution of qualified accountants. How well develop the discipline is in the country, and willingness of the policymaker to in cooperate accounting professionals in the scheme of things “it is important to realized that accounting if it wishes to be of maximum value to the society must follow its own independent continue to gear its self to the objectives of the socio-economic environment” [AAA,1978:6].

It does seems therefore that every individual situation has to be examined for the extent to which has been to adapt accounting to its peculiar needs and this should be apparent from the quality of service, the profession renders to the wider society. The only likely problem in such assessment is the relative difficulty in qualifying such benefit or impart. it may be easier to proceed rather null principle. The relative’s absence of such problems which accounting could solve could be indicative of a situation of a satisfactory adoptions to the need of the society, whereas the prevalence of such problem would indicate the contrary.


In Nigeria, there is a lot of accounting related problems which militate against this important profession. The following are numerous cases, that militate against are accounting profession.

(i) Business firms and organization which do not maintain any intelligible form of accounting records.

(ii) Allegations of tax evasion practice allegedly abatted by accountant and auditors.

(iii) Sudden collapse of business firms, which were believe to viable despite the retention of qualified accountants.

(iv) Poor husbanding resources by business firm and other organization indicting the extent qualify of financial management.

(v) Poor or absence of effective internal control procedure particularly in indigenous firms and parastatals organizations, enabling large scale fraud and embezzlement to take place.

(vi) Delays extending up to fire to ten years in the preparation and presentation of annual account by government and parastatals organizations.

(vii) Failure to adopt modern accounting techniques in the management of organization.

(viii) Poor fiscal management by government manifesting in out rageous expenditure deficits.

(ix) Arbitrary pricing policies of Nigeria parastatal organization such as NEPA, NITEL, NIPOST, NNRC,e t c.

(x) Long period of implementation of strategic government projects resulting to large opportunity losses and budget over-runs.

(xi) Poor sitting of project implying defective pre-investment evaluation and project planning etc

The above listed points are just a few pointers to the possible neglect, non utilization or under utilization of accounting services extent in the Nigeria situation.


The changing socio-economic environment of accounting exerts continuing pressures on accounting to constantly pressures review its goals, concepts and methodologies this situation makes accounting something of a discipline in a permanent state of flux, throwing up issues which must be continuously explored for possible refinement adopted or modification to suit the ever changing conditions. One is always tempted to call accounting “an unsettled discipline” because any text in accounting theory in recent times invariably presents a list of unsettled issues- see for instance carsberg and hope (1981), Lee (1981), Belkaoui (1985) in his “mega accounting trends” list a number of issues which he consider meriting further exploration or refinement in order to enhance the account’s role in economic development for example:

(i) Macro-accounting: this comprises the adaptation of accounting measurement techniques to the analysis and reporting of economic activities, values flows and stock undertaken within the entire macro system and relationship between one macro-accounting opens up a totally new area of accountants to experiment and adopt the principles of their discipline.

(ii) Socio-economic or social accounting: the measurement and the reporting on a systematic basis of the external [social] cost and benefits of corporate actions. The social accounting movement insist that in –so-far as corporate action in variably agender wider societal reactions[external cost and benefits] which transmit beyond organization boundaries, the present construct or corporate report which focus only on internal outcomes is inadequate and incomplete and does not serve to inform on the vitals questions whether a micro- units operations actually result in a net benefit or net loss to society, socio-economic or social accounting to correct this deficiency. Totally different criteria of measurement are entailed in social accounting. The prevailing focus on protection issues all over the world may well force the accounting discipline to develop appropriate techniques of measurement and reporting which are pertinent to its aims and objectives.

(iii) Government accounting: There is an increasing recognition within the profession that the significant strides made in accounting research during the last few decades have in focusing solely on business accounting, unfortunately neglected or passed a major sector of the socio-economy which has a compelling impact on the general citizen. For the dominate roles which government plays especially in the developing world where government often control by far the greater proportion of the national wealth, there is substantial justification that qualify of accounting done in government should be just as good if not even surpass as which exist in the private sector the continue neglect by practitioners and researchers of government accounting is therefore consider a serious disservice to society.

(iv) Cash flow reporting: There have been agitation for upwards of three decades now among some accounting theorist than the conventional measurement principals followed in accounting to the extent that they remain essentially accrual based, can only answer one of the two cardinal questions of interest equity investor[what is the profit earned by the business?] leaving the other crucial question of [what is the liquidity and trend of the business?] it is suggested that some certain vital decisions which the investors might want to take, the liquidity question may even be more important than the profit concern. It was thought for a time that the introduction of the funds flow statement [statement of source and application of fund], fulfill this need. The fallacy of this assumption was however only recently recognized when in the UK and properly in some other countries the preparation of the funds flow statement was abrogated and substituted by another term cash flow statement.

The cash flow statement seek to present in a highly compressed form the summary of the actual volume of the cash flowing into and out of the firm on account of the identified activities and the net impact of these flows on the liquidity position at the end of the accounting period. If remain to be empirically verified whether and to what extent the cash flow statement aids or improves the investor’s decision


Account helps an economy to plan how to mobilize its resources because account conducts feasibility studies and reports from the feasibility reports. An economy sees how to utilize its resources. Also the distribution of economic results/rewards of an economy is handled through the value added prepared by the accountant. These activity of planning how to mobilize resources and utilize resources and ensuring the adequate reward system is in place, will enable an economy to achieve the threes of economy, effectiveness and efficiency if we itemize what has been stated above we discover the following

(i) Accounting helps an economy to operate at optimum level. This is because accountants ensure that resources is obtained economically and used effectively and efficiently. In this way accountant help to ensure that all the resources of an economy are mobilize and put into optional uses.

(ii) Accountant help to ensure that adequate reward and returns are produced from the activities of an economy. This reward and economy will not only be produced but must be seen by stake holder to have been produced. This leads us into adequate accountability so that the level of trust and business activities will be enhance.

(iii) Accountants help potential investors to put their investment into optimal uses. Accountants do this by providing adequate feasibility report with which they guide the would be investors. In so doing, accountant helps to increase the investment inflow into an economy.

(iv) Accountants help an economy to prepare the national income [GNP] and national budget. Without an accountant a nation will not be able to ascertain the quantum of productive activities going on in the economy.

(v) At the micro level, an economy relies so much on tasks revenue. Accountant deal with taxation and the implication of a tax systems on the mobilization, utilization and the reward of financial resources. Nigeria introduced the value-added tax [VAT] to reduce the adverse effect of income tax, without reducing government revenue from tax. VAT taxes the consumers instead of the producers. As a result, it encourages production and investment.

In summary, accounting will that there is adequate planning of an economy, the optimal utilization of the resources of that economy, proper account ability for actions of managers, adequate guide to investors, and the effective generation of government revenue through taxes and other sources.


Accounting exist because at any one time the resources available to satisfy the need of human beings are limited. These resources have to be allocated or managed in order to secure their best use and avoid their waste. Accounting is an aid in the public management and in the sharing of the products. It is a set of concept and method for making and recording measurement relating to these matters, classifying and summarizing them and finally reporting and interpreting the results.

Accounting is often characterized as “language of business”. The acceleration of change in our complex society has contributed to over-increasing complexities in this “language” which use in, recording and interpreting basis economic data for government and the enter society. Accounting therefore plays a vital role in our economic and social system.

Accounting provides quantitative information about economic entities that is intended to be useful in making economic decision. Accounting report are used to describe the activities and financial status of many different type of economic.

In public accounting, their work includes auditing management advisory service and tax services. In private accounting their work include general accounting, cost accounting, budgeting and internal auditing. Accountant in government work in the same areas as private accounting plus in the area of crime detection in the society. The term public refers to the role of an accountant who handles recording keeping and reporting matter for the public. The accountant is an adviser of both individual, business and government. The accountant are relied upon so much because of not only their analytical and decision making skills but also their objectivity, integrity and detection to service, one thing is clear the accountant is very valued and trusted advisor and a professional who has not only kept up with the quickly changing world around us but who has help shape it. They analyze how money is used by government.

Accounting – Role Of An Accountant In A Democratized Nigeria

To place an order for the Complete Project Material, pay N5,000 to

GTBank (Guaranty Trust Bank)
Account Name – Chudi-Oji Chukwuka
Account No – 0044157183

Then text the name of the Project topic, email address and your names to 08060565721.  

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  1. Pls, I need clue on how to write a project topic on Accounting System in Nigerian Health Institution

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